LRH covered very clearly when HCO Confessionals are done:

“… the usual circumstances under which an HCO Confessional is done are that the person is already undergoing a Comm Ev or other ethics investigatory action or is working through lower ethics conditions …”

HCO P/L 7 January 1985
HCO Confessionals
(OEC Vol. 1, p. 648)

“The statement 'I am not auditing you' only occurs when a Confessional is done for justice reasons… (By 'justice reasons' is meant when a person is refusing to come clean on a Comm Ev, B of I, etc., or as part of a specific HCO investigation when the person is withholding data or evidence from such HCO personnel.)”

HCOB 30 November 1978R
Confessional Procedure
(Tech Vol. XI, p. 359)

LRH also warned of the dangers of trying to handle something before there's anything to handle:

“The basic flaw in organization is INSPECTION BEFORE THE FACT. That means inspection before anything bad has happened.

Violations are so harmful they destroy every great civilization — the Roman, the British, the lot. For every flow is slowed or stopped.

… Passports, customs, safety regulations, general government interference before anything bad has occurred, add up to a SUPPRESSIVE SOCIETY and therefore, soon enough, a dead one.

after the fact has occurred disciplines the criminals and does not pull down the majority to criminal level.”

HCO P/L 6 February 1968
Organization — The Flaw
(OEC Vol 0, p. 66)